Shipping groups back proposal for industry-financed US$5Bn decarbonisation fund

The shipping industry associations called on global governments to "be on the right side of history" in a joint statement supporting a proposal for the IMO-based framework fund.

The proposal, submitted to IMO, is to establish a US$5Bn IMO Maritime Research Fund financed by mandatory contributions from the world’s shipping companies.

Countries backing the proposal include Georgia, Greece, Japan, Liberia, Malta, Nigeria, Palau, Singapore and Switzerland. The proposal will be considered at IMO’s Marine Environment Protection Committee meeting slated for November 2021, shortly after the UN’s Climate Conference (COP 26) takes place in Glasgow, Scotland.

"This US$5Bn fund will support a new International Maritime Research and Development Board to commission collaborative programmes for the applied research and development of zero-carbon technologies, specifically tailored for maritime applications, including development of working prototypes. It will also assist CO₂ reduction projects in developing countries, including Pacific island nations," the joint statement said.

The coalition of shipping industry groups said that a significant acceleration of research and development efforts would be needed for the industry to decarbonise, as zero-carbon technologies that can be applied at scale to large oceangoing ships do not yet exist.

"A well-funded R&D programme, which the industry has agreed to pay for within a global regulatory framework, needs to commence immediately under the supervision of the UN IMO. Recognising the urgency and ambition required to decarbonise, shipping industry groups are calling for all governments to be on the right side of history in supporting this ambitious proposal," the statement said.